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Event ID: 101 Source: MSFTPSVC

The server was unable to add the virtual root '' for the directory '<path>' due to the following error: <error description>. The data is the error code.
I got this error when using a virtual directory for my FTP server in IIS 5.0, on a drive on a different machine. I noticed that there was no user mentioned in the event description. So, it had to be a permissions issue with the host server. I gave the "Domain Computers" group basic read/list rights to the ftp folder on the remote computer and the error was gone.
- Error: "Error about the directory occurred were described properly in is indicated" - See ME223398 for a hotfix applicable to Microsoft IIS 3.0.
Error: "Access denied" - The Event showed up after I tried to add a FTP Site Directory that was a share located on another computer in the domain. Under "Connect As" I used a username that has full control to that share, subfolders and files.
Error: "The system cannot find the file specified". This event is generated when the home directory of an IIS FTP site is corrupted or deleted without deactivating the ftp site first. Verify that the path exists and that it is accessible to the account running the FTP server.
Error: "Access is denied" - See the link to Error code 5.
Error: Access is denied - We solved this problem by granting the Everyone group with List Permissions on the virtual root folder.

Error: "Access is denied" - The System account needs to have access to this directory for the FTP service to add the root.
Error: "Access is denied" - We got this after running the IIS lockdown tool, IIS changes the default permissions on your hard drive.
Verify the account the "FTP Service" is starting with and ensure that account has read/write permission to the folder the ftp alias is directed to.

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